Stats Report Feb 26 2010

8/14/2019 Stats Report Feb 26 2010

1/47

12

3

AbitibiBowater4Report:AnalysisofStockPrice,Shorts,andFailstoDeliver5

RevisionNo.26

7

8

9

10

11

12

13

14

15

16

17

Prepared by:18

19

Elizabeth Romero, MSc20

Dr. Henry Romero, CPE, CSP2122

23

24

February 27, 201025

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2/47

AbitibiBowater Report: Analysis of Stock Price, Shorts, and Fails to Deliver February 27, 2010

Revision No. 2 Page 2 of 47

ExecutiveSummary12

AninterestwasgeneratedinascertainingwhetherthetradingactivityonABWTQhasbeenfollowinga3

definedpattern,especiallyasrelatedtoshortstrading.4

5

DatawasobtainedfromseveralpubliclyavailablesourcesontheinternetincludingETrade,Investors6

Hub,FINRA,StockWatch,FailstoDeliver.com,RegSho(onFINRAwebsite),OTCBB.comand7

NASDAQTrader.com.8

9

Datacollectedincluded: DailyOpen/Close,DailyHigh/Low,DailyPricebeforeandafterbankruptcy(BK),10

VolumeofTrades,DaysFailsThresholdMet,VolumeofReportedShorts,andDailyChangeinPrice(from11

openingprice). Fromthat,acalculationwasmadebeyondtheordinaryreportednumbers. This12

calculationwasthedifferencebetweenthepricesattradingevent+1minustradingevent. Inother13

words,iftherewasatradeexecutedat11:03Aandthenexttradeoccurredat11:04A,thentheprice14

recordedat11:03Aissubtractedfromthepriceat11:04Atogetthedifferenceinprice.15

16

ThefailstodeliverdatapriortoBKshowaninterestingpatternofhighfailsmostlikelybeingdueto17

nakedshorting. Theshortingwasatalevelmeetingthresholdforreportingnearly90%to100%ofthe18

tradingdaysfor11monthspriortoBKaftertheBowatermergerwhichappearsinpartresponsiblefor19

theBK. AfterBK,thepriceseemedtobedriventotherangebetween$.10to$.20USDshortlyafterBK20

andapparentlywaspurposelykepttherebymanipulatingthetradesresultinginapositiveornegative21

differenceinpricealongwiththosethatresultedinnochange. ThefailuresinthefirstfewmonthsofBK22

alsoputpressureonthepriceanddecreasedtheinterestintradingthestock. Wheninterestin23

acquiringthestockincreased,sodidthevolumeofshorts,thuskeepingthepricefairlyflatand24

decreasingupwardmomentumofthestock.25

26

Animportantanalysiswastoexaminethetotalsharevolumetradedpermonthbyeachmarketmaker27

asavailableonOTCBB.com. ThisdataclearlyindicatesthatABLEandNITEarethelargesttradersofthis28

stocksinceBK.29

30

Itisimportanttonotethatthisanalysiscontainsconclusionsdrawnfromasimple,computationaland31

graphicalrepresentationofthedataobtainedfrompublicdatasources. Thisisnotarigorousfinancial32

studyaccordingtoanySECorstandardaccountingpracticesandthereforetheconclusions,while33

illuminatingandunique,shouldbecarefullyconsideredbeforeanyinvestingdecisionsaremade.34

Indeed,donotmakeanyinvestingdecisionsoffofthisdata,period. Itonlyrepresentstheopinionsof35

thepreparersofthisreport.36


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TableofContents12

1. AnalysisofPrice,Volume,Fails,Thresholds,andShorts...................................................................... 63

1.1. Introduction.................................................................................................................................. 64

1.2. AnalysisofPrice............................................................................................................................ 65

1.3. AnalysisofVolumeofTrading...................................................................................................... 86

1.4. AnalysisofShortsTrading........................................................................................................... 107

1.5. AnalysisofFailstoDeliver........................................................................................................... 158

1.6. AnalysisofFailsThresholds......................................................................................................... 209

2. AnalysisofDifferences,Changes,SharesTraded,andPrice.............................................................. 2310

2.1. April2009.................................................................................................................................... 2511

2.2. May2009.................................................................................................................................... 2612

2.3. June2009.................................................................................................................................... 2713

2.4. July2009..................................................................................................................................... 2914

2.5. August2009................................................................................................................................ 3015

2.6. September2009.......................................................................................................................... 3116

2.7. October2009.............................................................................................................................. 3317

2.8. November2009.......................................................................................................................... 3418

2.9. December2009........................................................................................................................... 3519

2.10. All2009................................................................................................................................... 3720

2.11. January2010........................................................................................................................... 3821

3. ShareVolumebyMonth..................................................................................................................... 4022

4. Conclusions......................................................................................................................................... 4523

5. Questionsthatdemandtobeanswered............................................................................................ 4724

25

TableofFigures26Figure1:ClosingPriceforBOW,ABY,ABHandABWTQfromCY2003throughCY2010............................ 727

Figure2:DailyPriceafterBankruptcy.......................................................................................................... 828

Figure3:VolumeofDailyTradesforPast10Yearsthrough2/11/2010...................................................... 929

Figure4:PercentofSharesTradedperTotalSharesAvailableforTrading(54.7M)sinceBankruptcy.....1030


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Figure5:ShortSelling................................................................................................................................. 111

Figure6:DailyVolumeofReportedShortssinceAugust2009.................................................................. 122

Figure7:PercentofShortstoDailyVolumeofSharesTradedsinceAugust2009.................................... 133

Figure8:PercentofShortsperTotalSharesAvailableforTrading(54.7M)sinceAugust2009................144

Figure9:NakedShortSelling...................................................................................................................... 155

Figure10:DailyVolumeofFailstoDeliverfromApril2004throughCY2009(BOWtoABHtoABWTQ)6

(FailsareAggregates).................................................................................................................................. 167

Figure11:DailyVolumeofReportedFailsofAbitibiConsolidated,Inc.April2004toOctober2007(Fails8

areAggregates)........................................................................................................................................... 179

Figure12:DailyVolumeofReportedFailsofABHOctober2007toApril2009(FailsareAggregates).....1810

Figure13:DailyVolumeofReportedFailsofABWTQsinceApril2009(FailsareAggregates)..................1911

Figure14:PercentofFailsperTotalSharesAvailableforTrading(54.7M)sinceApril2009(Failsare12

Aggregates)................................................................................................................................................. 2013

Figure15:DaysandPercentofTradingDaysperMonththatFailsThresholdwasMetCY2005through14

CY2009....................................................................................................................................................... 2115

Figure16:TotalVolumeofSharesTradedperMarketMoverfor2009.................................................... 4216

Figure17:ABLESharesTradedPerMonth................................................................................................. 4217

Figure18:NITESharesTradedPerMonth.................................................................................................. 4318

Figure19:ETMMSharesTradedPerMonth.............................................................................................. 4319

Figure20:UBSSSharesTradedPerMonth................................................................................................. 4420

21

TableofTables22Table1:AverageShortsperTradingVolume............................................................................................. 1423

Table2:CategoriesofSharesTraded......................................................................................................... 2324

Table3:April2009Price,Change,andSharesTradedInformation........................................................... 2525

Table4:April2009DifferencesEvaluation................................................................................................. 2626

Table5:April2009DifferencesDistribution............................................................................................... 2627

Table6:May2009Price,Change,andSharesTradedInformation........................................................... 2728

Table7:May2009DifferencesEvaluation................................................................................................. 2729

Table8:May2009DifferencesDistribution............................................................................................... 2730

Table9:

June

2009

Price,

Change,

and

Shares

Traded

Information

...........................................................

28

31

Table10:June2009DifferencesEvaluation............................................................................................... 2832

Table11:June2009DifferencesDistribution............................................................................................. 2833

Table12:July2009Price,Change,andSharesTradedInformation.......................................................... 2934

Table13:July2009DifferencesEvaluation................................................................................................ 2935

Table14:July2009DifferencesDistribution.............................................................................................. 3036

Table15:August2009Price,Change,andSharesTradedInformation..................................................... 3037


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Table16:August2009DifferencesEvaluation........................................................................................... 311

Table17:August2009DifferencesDistribution......................................................................................... 312

Table18:September2009Price,Change,andSharesTradedInformation............................................... 323

Table19:September2009DifferencesEvaluation..................................................................................... 324

Table20:September2009DifferencesDistribution.................................................................................. 325

Table21:October2009Price,Change,andSharesTradedInformation................................................... 336

Table22:October2009DifferencesEvaluation......................................................................................... 337

Table23:October2009DifferencesDistribution....................................................................................... 348

Table24:November2009Price,Change,andSharesTradedInformation............................................... 349

Table25:November2009DifferencesEvaluation..................................................................................... 3510

Table26:November2009DifferencesDistribution................................................................................... 3511

Table27:December2009Price,Change,andSharesTradedInformation................................................ 3612

Table28:December2009DifferencesEvaluation...................................................................................... 3613

Table29:December2009DifferencesDistribution................................................................................... 3614

Table30:All2009Price,Change,andSharesTradedInformation............................................................ 3715

Table31:All2009DifferencesEvaluation.................................................................................................. 3716

Table32:All2009DifferencesDistribution................................................................................................ 3817

Table33:January2010Price,Change,andSharesTradedInformation.................................................... 3918

Table34:January2010DifferencesEvaluation.......................................................................................... 3919

Table35:January2010DifferencesDistribution........................................................................................ 3920

Table36:SharevolumetradedpermonthbyMarketMaker.................................................................... 4021

Table37:MarketMakerSymbolsandDefinitions...................................................................................... 4122

Table38:SummaryoftheDifferencesintheStandardDeviationsofthePositiveandNegativePrice23

Differencesper2009monthafterBK......................................................................................................... 4524

25

26

27


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1.AnalysisofPrice,Volume,Fails,Thresholds,andShorts11.1.Introduction2

3

Thefirststepinthisanalysiswastoreviewthehistoricpricefluctuations,thehistoricvolumeoftrades,4

thefailstodeliver,thefailstodeliverthresholds,andtheshorts. Thehistoricpricefluctuationswere5

reviewedforthepast10yearstocoverthetimeofthemergerwithBowaterandthebankruptcy. The6

priceafterbankruptcywasanalyzedseparatelytoprovidemoredataresolution. Thehistorictrade7

volumeswerereviewedforthesamereasonsandalsotoprovidefurtheranalysisinSection2. Afailto8

deliverisrecordedwhenasellerdoesnotprovidethesharesofstockthatweresoldwithintherequired9

3daysettlementtimeframe.FromtheSEC:"Failstodelivercanoccurforanumberofreasonsonboth10

longandshortsales.Therefore,failstodeliverarenotnecessarilytheresultofshortselling,andarenot11

evidenceofabusiveshortsellingornakedshortselling."(Takenfromthefollowingwebsite:12

www.failstodeliver.com)13

14

RegSHOisdesignedtofulfillseveralobjectives,including:(a)theestablishmentofuniformlocateand15

deliveryrequirementsinordertoaddressproblemsassociatedwithfailurestodeliver,and(b)the16

creationofuniformmarkingrequirementsforsalesofallequitysecurities. Accordingly,theNYSEwill17

postalistofthresholdsecuritiesonthissiteforeverysettlementday. TheThresholdListwillnotbe18

generatedonbankholidayswhentheDepositoryTrust&ClearingCorporationisclosedbutequity19

exchangesareopen.(Takenfromthefollowingwebsite:http://www.nyse.com/regulation/nyse/)20

1.2.AnalysisofPrice2122

Figure1showsthedailyClosingpricesforthepast7yearsfortheseparatecompaniesofAbitibi23

ConsolidatedandBowater. Itthendisplaysthepriceaftermergerandthroughbankruptcy(BK). The24

timeperiodcoveredisfromCalendarYear(CY)2003throughCY2009andintothefirstfewweeksofCY25

2010. Itcanbeseenthattherewasanorderlyreductioninpricestartinginearly2005forBowater26

(BOW)andcontinuingthroughthelatterhalfof2007. Thepricedroppedfromaround$45USDto27

around$15USDacrossthattimeforBowater. AbitibiConsolidated(ABY)notedasimilardropinprice28

acrossthesametimeperiodbuttherangewasfromaround$7USDtoaround$2USD. Atthatpoint,29

thetwocompaniesmergedintoAbitibiBowater(ABH)andthesharepricespikedtoaround$36USD.30

Almostimmediately,

the

price

dropped

to

under

adollar

leading

into

the

announcement

of

BK

and

31

stayedtheresince.32

33


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1Figure1:ClosingPriceforBOW,ABY,ABHandABWTQfromCY2003throughCY20102

Sincethepriceafterbankruptcydroppedbelowadollar,theabovegraphdoesnotprovideany3

resolutionfor

the

price

fluctuations

after

that

point.

Therefore,

Figure

2shows

the

daily

price

after

4

bankruptcy. Ascanbeseen,thepricehitahighshortlyafterbankruptcyandthendroppedtonearly5

$.10USD. Itfluctuatedbetween$.10USDand$.20USDsincethenexceptforthenotablefluctuationin6

October2009. ThereasonforthefluctuationinthepriceinOctoberwasduetotheanticipationofthe7

Hydroassetsale,themorepositiveMOR,andthehighervolumeofpositivechatterhappening. The8

flatnessoftheprice(lackoffluctuation)isinandofitself,remarkable. Mostprices,eveninBK,tendto9

havemorevariation. ThislackofvariationwillbefurtherdiscussedinSection2ofthisreport.10

11


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1Figure2:DailyPriceafterBankruptcy2

1.3.AnalysisofVolumeofTrading34

Thedailytradevolumesforthepast10yearsisdisplayedinFigure3. Itcanbeseenthatthevolumeof5

tradesisflatthrough2005andmostof2006. Startingtowardstheendof2006,thevolumestartedto6

rise. Therewasaspikein2007whichreflectsthemergerwithBowater. Itisimportanttonotethatthe7

tradevolumefluctuatesmuchmoreafterthemergerthanbefore. AfterBKin2009,thetradevolumeis8

less,butitisstillhigherthanbeforemergerandstillfluctuatesmore.9

10


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1Figure3:VolumeofDailyTradesforPast10Yearsthrough2/11/20102

Whiletheactualvolumeoftradesisreflectiveofactivity,thepercentofsharestradedrelativetothe3

totalnumberofsharesavailablefortradingisveryillustrativeofthetradingpatterns. Figure4shows4

thepercentofsharestradedpertotalsharesavailablefortradingsinceBK. Thetotalsharesavailable5

fortradingfromABHareapproximately54.7M. TheanalysisafterBKwaschosenforfurtherstudyfor6

thesamereasonasFigure2lookedatpriceafterBK. ThevolumeoftradingafterBKwasgenerally7

below2%ofthesharesavailablefortradingexceptforsomenotablespikesinJune2009andOctober8

2009. However,eventhosespikesdonotexceed10%. Thisisaverylowtradingvolume. Also,the9

spikeinJunewasnotmatchedwithaspikeinprice,thoughthespikeinOctoberwastemporarily10

reflectedintheprice.11

12


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1Figure4:PercentofSharesTradedperTotalSharesAvailableforTrading(54.7M)sinceBankruptcy2

1.4.AnalysisofShortsTrading34

Infinance,shortselling(alsoknownasshortingorgoingshort)isthepracticeofsellingassets,usually5

securities,thathavebeenborrowedfromathirdparty(usuallyabroker)withtheintentionofbuying6

identicalassets

back

at

alater

date

to

return

to

the

lender.

The

short

seller

hopes

to

profit

from

a

7

declineinthepriceoftheassetsbetweenthesaleandtherepurchase,ashewillpaylesstobuythe8

assetsthanhereceivedonsellingthem.Conversely,theshortsellerwillincuralossifthepriceofthe9

assetsrises.Othercostsofshortingmayincludeafeeforborrowingtheassetsandpaymentofany10

dividendspaidontheborrowedassets.Shortingandgoingshortalsorefertoenteringintoany11

derivativeorothercontractunderwhichtheinvestorprofitsfromafallinthevalueofanasset.(Taken12

fromWikipediahttp://en.wikipedia.org/wiki/Short_(finance)).13

14


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1Figure5:ShortSelling2

ThevolumeofshortsreportedbyFINRAisavailableontheirwebsitebackthroughAugust2009. Data3

priorto

August

2009

has

been

requested

from

SEC

but

so

far

has

not

been

provided.

Figure

6shows

the

4

actualvolumeofshortstradedperdaysinceAugust2009. Itisinterestingtonotethehighvolumeof5

shortsinOctoberwhichiswhenthepricefluctuatedupduetotheanticipationoftheassetsaleandthe6

morepositiveMOR. Notethatthesharecountonthisgraphstartsat50,000andgoesto1.5M.7

8


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1Figure6:DailyVolumeofReportedShortssinceAugust20092

Thedailyvolumeofshortsisdividedbythevolumeofsharestradedthatdaytogetthepercentageof3

sharestradedthatdaythatwereshorts. AscanbeseeninFigure7,thepercentofshortstothevolume4

ofsharestradedsinceAugust2009isfluctuatingsignificantlybetweenzeroand80%. Itappearsthatthe5

volumeofshortsisconsistentlyahighvolumeofthesharestradedwithsufficientrestinbetweento6

allowforsomecoverageoftheshorts.7

8


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1Figure7:PercentofShortstoDailyVolumeofSharesTradedsinceAugust20092

Figure8showsthevolumeofshortstradedperdaydividedbythetotalsharesavailablefortrading3

(54.7M)sinceAugust2009. Thisisexpressedasapercentage. Ascanbeseenthemajorityofthe4

tradingdayssinceAugustendedwiththeshortsbeinglessthan0.5%oftheavailableshares.5


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1Figure8:PercentofShortsperTotalSharesAvailableforTrading(54.7M)sinceAugust20092

Table1showstheaverageoftheshortvolumesdividedbyboththetotalnumberofsharesavailable3

andthesharestradedthatday. Theaverageisamonthlyaveragewiththeaverageforthelastfive4

monthsof2009shownonthelastrowentitledTotal. Ascanbeseen,theaveragevolumeofshorts5

pertotalnumberofsharesavailableislessthan0.3%foreachmonthexceptOctober2009whichdrove6

theoverall

average

to

less

than

the

critical

0.5%.

The

average

shorts

per

day

as

apercentage

of

the

7

sharestradedthatdayhowever,exceeded30%exceptforNovemberandDecember,withDecember8

2009exceeding20%. Thisleftanaverageforthelastfivemonthsof2009nearly30%oftheshares9

tradedperdaybeingshorts.10

11

Table1:AverageShortsperTradingVolume12

AverageShortsperday

DividedbyTotal#Shares

AverageShortsdividedby

sharestradedthatday

Aug 0.27% 31.49%

Sep

0.27%

39.22%

Oct 0.82% 37.87%

Nov 0.13% 13.77%

Dec 0.25% 21.61%

Total 0.35% 28.95%

13


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1.5.AnalysisofFailstoDeliver12

Nakedshortselling,ornakedshorting,isthepracticeofsellingafinancialinstrumentshortwithoutfirst3

borrowingthesecurityorensuringthatthesecuritycanbeborrowedasisdoneinaconventionalshort4

sale.

When

the

seller

does

not

obtain

the

shares

within

the

required

time

frame,

the

result

is

known

as

5

a"failtodeliver". Thetransactiongenerallyremainsopenuntilthesharesareacquiredbytheseller,or6

theseller'sbroker,allowingthetradetobesettled. Nakedshortingisnotnecessarilyaviolationofthe7

federalsecuritieslawsortheSEC'srules. Butitisillegalwhenmanipulatorsusethepracticetoforce8

stockpricesdownbytemporarilyincreasingthesupplyofstockorinotherwaysmanipulatingthestock9

price. Notcoveringtheshortsisreportedasathresholddayifcertainrequirementsdiscussedin10

Section1.6aremet. (excerptedfromhttp://en.wikipedia.org/wiki/Naked_short_selling)11

12

13

Figure9:NakedShortSelling14

Failurestodelivermayresultfromeitherashortoralongsale.Theremaybelegitimatereasonsfora15

failuretodeliver.Forexample,humanormechanicalerrorsorprocessingdelayscanresultfrom16

transferringsecuritiesinphysicalcertificateratherthanbookentryform,thuscausingafailureto17

deliveronalongsalewithinthenormalthreedaysettlementperiod.Afailmayalsoresultfromnaked18

shortselling.Forexample,marketmakerswhosellshortthinlytraded,illiquidstockinresponseto19

customerdemandmayencounterdifficultyinobtainingsecuritieswhenthetimefordeliveryarrives20

(takenfrom:http://www.sec.gov/spotlight/keyregshoissues.htm).21

22

Itisimportanttonotethatthefailstodeliverdataareaggregates. Thismeansthatthefailstodeliver23

fromDay1thatarenotcoveredbyDay2areaddedtoDay2andsoforth. FromtheSEC:"Thevaluesof24

totalfailstodeliversharesrepresenttheaggregatenetbalanceofsharesthatfailedtobedeliveredas25

ofaparticularsettlementdateifthebalanceis10,000sharesormore.Iftheaggregatenetbalanceof26

sharesthatfailedtobedeliveredislessthan10,000asofaparticularsettlementdate,thennorecord27


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willbepresentinthefileforthatdateeveniftherearefailsinthatsecurity.Failstodeliveronagiven1

dayareacumulativenumberofallfailsoutstandinguntilthatday,plusnewfailsthatoccurthatday,2

lessfailsthatsettlethatday.Thefigureisnotadailyamountoffails,butacombinedfigurethatincludes3

bothnewfailsonthereportingdayaswellasexistingfails."(excerptedfromthefollowingwebsite:4

www.failstodeliver.com).5

6

Bowater,Inc,wasmergedwithAbitibiConsolidatedattheendofOctober2007. Figure10showsthe7

volumeoffailsforBowater,Inc.,(BOW)fromFebruary2004throughthemergerandthrough8

bankruptcytilltheendofCY2009. Ascanbeseen,thequantityoffailswasverylowthroughtothelast9

quarterof2006atwhichitbegantoincrease. Theincreasepeakedin2007forfourmonthspriortothe10

merger.11

12

13Figure10:DailyVolumeofFailstoDeliverfromApril2004throughCY2009(BOWtoABHtoABWTQ)(FailsareAggregates)14

Figure11showsthevolumeoffailsforAbitibiConsolidated,Inc.(ABY)fromApril2004throughtothe15

merger. Ascanbeseen,thequantityoffailswereupsomein2005andearly2006buttailedoffinthe16

secondquarterof2006atwhichtimeitbegantosteadilyincreaseagain. Theincreasepeakedin200717

atthetimeofthemerger.18

19


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1Figure11:DailyVolumeofReportedFailsofAbitibiConsolidated,Inc.April2004toOctober2007(FailsareAggregates)2

Toprovidemoredetail,Figure12depictsthedailyvolumeofreportedfailsfromOctober30,2007,to3

April2009(BK)rememberingthatfailsareaggregates. Thereisasignificantvolumeoffailstodeliverin4

thenearlytwelvemonthsleadinguptoSeptember2008. AfterSeptember,2008,thevolumeoffails5

dropssharplyexceptforaspikeinJanuary2009. Thereisasignificantvolumeoffailsshortlyaroundthe6

time

of

the

BK

announcement.

7

8


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1Figure12:DailyVolumeofReportedFailsofABHOctober2007toApril2009(FailsareAggregates)2

Figure13depictsthedailyvolumeofreportedfailssinceApril2009(BK)rememberingthatfailsare3

aggregates. ThereisasignificantvolumeoffailsshortlyaroundthetimeoftheBKannouncementand4

theyremainedhighthroughJuly2009. TheyremainedlowafterthatexceptforaspikeinDecember5

2009.

6


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1Figure13:DailyVolumeofReportedFailsofABWTQsinceApril2009(FailsareAggregates)2

Figure14depictsthepercentageoffailstothetotalsharesavailablefortrading(54.7M)sinceApril20093

(BK). Ascanbeseen,themajorityofthedayssawthefailstobedeliveredtobelessthan0.5%ofthe4

totalavailableshares. Byhavingtheleveloffailslessthanonehalfofonepercentofthetotalavailable5

shares,theyavoidthethresholdforreporting.6


20/47



1Figure14:PercentofFailsperTotalSharesAvailableforTrading(54.7M)sinceApril2009(FailsareAggregates)2

1.6.AnalysisofFailsThresholds34

Thefailstodeliverarereportedasathresholdsecurityundercertaincircumstances. AThreshold5

SecurityisdefinedbyRule203(c)(6)oftheSEC'sRegulationSHOasanyequitysecurityofanissuerthat6

isregistered

under

Section

12,

or

that

is

required

to

file

reports

pursuant

to

Section

15(d)

of

the

7

ExchangeActwhereforfiveconsecutivesettlementdays:(1)thereareaggregatefailstodeliverata8

registeredclearingagencyof10,000sharesormorepersecurity;(2)theleveloffailsisequaltoatleast9

onehalfofonepercentoftheissuer'stotalsharesoutstanding;and(3)thesecurityisincludedonalist10

publishedbyaselfregulatoryorganization.(Takenfromthefollowingwebsite:11

http://www.nyse.com/regulation/nyse/)12

13

Figure15showsthedaysthatthefailsmetthethreecriteriaforthresholdreportingaswellasthe14

percentoftradingdayspermonththatthresholdweremetfromCY2005throughCY2009. CY200515

throughmerger

between

Abitibi

and

Bowater

(November

2007)

is

data

for

Abitibi

only.

Bowater

was

16

reviewedforthresholdsmetforthattimeperiod,butnonewerefound. Theareasonthegraphs17

markedinablueboxaretheperiodaftermergerandpriortothebankruptcyannouncement.18

Therefore,thisdataisABHorAbitibiBowater,Inc. Theareamarkedwithayellowboxisforthemerged19

companyafteritannouncedbankruptcy.20


21/47



1Figure15:DaysandPercentofTradingDaysperMonththatFailsThresholdwasMetCY2005throughCY20092

Priortothemerger,therewerefewdaysthethresholdwasmet. Immediatelyaftermerger,thenumber3

ofdaysthethresholdwasmetjumpedtobetween90%to100%ofthetradingdayspermonthforeight4


22/47



oftheninemonthsimmediatelyafterthemerger. Intheelevenmonthsbetweenmergerand1

bankruptcy,thethresholdwasmetabout70%ofthetradingdaysintwoofthemonthsthatitdidnot2

risetoabove90%. August2008metthethresholdnearly40%ofthetime. Immediatelyafterthe3

announcementofbankruptcy,therewasasteadyriseinthepercentofdaysthethresholdwasmet4

whichpeakedinJuly2009. Itisimportanttonotethatthefailsthresholdwasnotmetforthemonths5

fromSeptember2009throughDecember2009dueatleastinpartbecausethefailstodelivervolume6

waslessthanonehalfofonepercentoftheoverallsharesavailablefortrading.7

8


23/47



2.AnalysisofDifferences,Changes,SharesTraded,andPrice12

Theprevioussectionofthisreportdealtwithvolumeoftrades,shorts,failsandhistoricaldatarelatedto3

thresholds,andprice. However,thisinformationdoesnotillustratewhetherthesefluctuationsand4

activityhad

any

effect

on

the

stock

price.

This

next

section

looks

at

the

price

and

how

it

was

affected

by

5

theintradaytradingsinceBK. Severalpiecesofdatawerecollectedincludingthetimingoftheintraday6

tradingevent,theactualpriceassociatedwitheachtradingevent,thechangeinthatpricefromthe7

openingpricefortheday,andthenumberofsharestradedinthatevent. Toanalyzethisdatamore8

effectively,thesharestradedwerebinnedintoeightdifferentcategories. Thesecategoriesareshownin9

thefollowingtable. Alongsidethecategorylabelisthemaximumpercentageofthetotalavailable10

sharesfromtheissuerthatthecategorycouldrepresent.11

12

Table2:CategoriesofSharesTraded13

Category PercentofTotalAvailableShares

1100 0.0002%

1011,000 0.0018%

1,0015,000 0.0091%

5,00110,000 0.0183%

10,00125,000 0.0457%

25,00150,000 0.0914%

50,001100,000 0.1828%

Morethan100K Morethan0.18%

14

ForeachmonthsinceBKthroughJanuary2010,thedatawasanalyzedforthefollowing. First,the15

changeand

the

price

were

evaluated

to

identify

the

Mode,

Median,

Average,

Maximum,

Minimum,

and

16

StandardDeviation. Modeisthemostfrequentlyoccurringvalueinagivensetofnumbers. Medianis17

themiddlevalueofthegivensetofnumberswhensortedinascendingorder. Averageisdefinedasthe18

sumofallthegivennumbersdividedbythetotalamountofnumbers. Themorecloselythemedianis19

totheaveragedemonstrateshowtightthedistributionis. Inotherwords,theaverageishighly20

impactedbythespreadofthedataversusthemedian. Ifthemedianandtheaveragearenearlyequal,21

thedataspreadislow. Themaximumisthegreatestvalueinthegivensetofnumbersandthe22

minimumistheleast. Thestandarddeviationisthestatisticalmeasureofspreadorvariabilityoftheset23

ofnumbers. Thestandarddeviationistherootmeansquare(RMS)deviationofthevaluesfromtheir24

arithmeticmean.

In

other

words,

the

higher

the

standard

deviation

then

the

greater

is

the

spread.

Also,

25

ifthedataisnormallydistributed,thenonestandarddeviationplusorminusfromtheaverageshould26

encompass95%ofthedatapoints.27

28

Thevolumeofthesharestradedandthetradingeventswerefurtheranalyzedforthestandard29

deviationinthenumberofsharespertradingevent,theaveragenumberofsharespertradingevent,30

thetotalnumberoftradingevents,andsumofthesharestraded.31


24/47



1

Fortheanalysisoftheeffectofeachtradingevent,thevalueknownasdifferenceiscalculated.2

DifferenceiscalculatedbysubtractingthepriceatTradingEvent1fromthepriceattheimmediately3

subsequentTradingEvent2andsoon. Itisademonstrationofthechangeinpriceassociatedwitheach4

tradingeventandamoreeffectivemeasurethancomparingagainsttheopeningpriceforthedaywhich5

isknownaschange. Ifthedifferencecalculationresultedinanegative,thismeansthatthepriceat6

TradingEvent2islowerthanthepriceatTradingEvent1. Ifthedifferencecalculationresultedina7

positive,thismeansthatthepriceatTradingEvent2ishigherthanthepriceatTradingEvent1. Ifthe8

differencecalculationresultedinanone,thismeansthatthepriceatTradingEvent2isequaltothe9

priceatTradingEvent1. Itisalsoimportanttoknowthatthefirsttradeofthedayiscomparedagainst10

thelasttradeofthepreviousdaytogetthedifferenceassociatedwiththefirsttradeoftheday.11

12

Afterallthedifferencesforeachtradingeventarecalculated,theyaresortedintopositive,negativeand13

noneandthecountsofeachareshowninthesecondofthesetofthreetablesineachmonth. The14

percentofeventsthatresultedinanegativedifferenceiscalculatedbydividingthetotalnumberof15

negativeeventsbythetotalnumberoftrades. Thepercentofeventsthatresultedinapositive16

differenceiscalculatedbydividingthetotalnumberofpositiveeventsbythetotalnumberoftrades.17

Thepercentofeventsthatresultedinnodifferenceiscalculatedbydividingthetotalnumberofnone18

eventsbythetotalnumberoftrades. Theaveragepositivedifferenceiscalculatedbysummingthe19

amountofthepositivedifferencesanddividingbythenumberofpositiveevents. Similarcalculations20

wereperformedforthenegativeandnonedifferenceevents. Foreachtypeofevent(positiveor21

negative),themaximumandminimumvalueisdisplayedasisthestandarddeviation. Thestandard22

deviationforthepositiveandnegativedifferencesisobtainedfromthedifferencesinpriceofthe23

resultingtrades.24

25

Tounderstandtheimpactthetradingvolumehadontheshareprice,thepositive,negative,andnone26

differencesassociatedwitheachcategoryarecountedasisthenumberofeachcategoryofshare27

volumetradingeventanddisplayedinthethirdofthesetofthreetablesineachmonth. Inother28

words,thenumberoftradingeventspercategorywascountedfirstandistitledTotalunderthe29

Countsheading. Thenumberoftradespercategoryresultinginapositivedifference(priceincreased)30

isdisplayedundertheheadingPositiveundertheCountsheading.Thenumberoftradesper31

categoryresultinginanegativedifference(pricedecreased)isdisplayedundertheheadingNegative32

underthe

Counts

heading.

The

number

of

trades

per

category

resulting

in

ano

difference

(price

33

unchanged)isdisplayedundertheheadingNoneundertheCountsheading. Addingthenumber34

ofeventsineachdifferencetypewillprovidethesamecountasthetotalpereachcategory. Addingup35

thetotalcountsforeachcategoryprovidesthenumberoftradingeventsdisplayedundertheheading36

TotalNo.ofTradesinthefirstofthesetofthreetablesineachmonth.37

38


25/47



TheheadingDistributionofDifferencesperCategoryinthethirdofthesetofthreetablesineach1

monthisameasureoftheimpacteachcategoryhadonthechangeintheshareprice. Thetotalcount2

oftradingeventspercategoryaredividedbythetotalnumberoftradingeventsforthemonthand3

displayedunderTotalundertheheadingDistributionofDifferencesperCategoryinthethirdofthe4

setofthreetablesineachmonth. Nexttothiscolumnisthedistributionofthosetradingeventsinto5

whethertheresultwaspositiveornegativeorunchangedinprice. Inotherwords,inApril2009,10%of6

thetradeswereassociatedwithtradeshaving100sharesorlessand24%ofthetimethosetradeswith7

100sharesorlesswereassociatedwithapositivechange,27%ofthetimetheywereassociatedwitha8

negativechangeand48%ofthetimetheyresultedinnochange.9

10

2.1.April20091112

AprilisthefirstmonthofBK. Theaveragepricewas$0.1359USDonatotalof36.3Msharestraded.13

Theaverage

number

of

shares

per

trade

is

12,947

which

represent

0.02%

of

the

total

available

shares

14

fromtheissuer. Thetotalnumberoftradingeventswas2,802. Ofinterestisthefactthat38%ofthe15

tradesresultedinnochangeintheprice. Thepercentoftradesthatresultedinapositivedifference16

was30%andthepercentoftradesthatresultedinanegativedifferencewas32%. Thevariabilityinthe17

positiveandnegativedifferencesinpriceasdemonstratedbythestandarddeviationofthedifferences18

isremarkablysimilarwiththedifferenceinthestandarddeviationsonlybeing0.0006. Theaverage19

positivedifferenceis0.0007greaterthantheaveragenegativedifference.20

21

Thetradesthathadavolume100sharesorlessaccountedfor10%ofthetradeswithnearlyonequarter22

ofthem

(24%)

resulting

in

apositive

difference

and

27%

resulting

in

anegative

difference

in

price.

This

23

meansthatoverhalfofthetradingeventsassociatedwithvolumeslessthan100shareswereassociated24

withapricethatwaseitherlessormorethantheimmediatelyprecedingprice. Halfofthetradeshad25

volumesbetween5,000and25,000shareswhichfitwiththeaveragesharespertrade. Ofthetrade26

eventsbetween5,000and10,000trades,overhalfofthemresultedinnochangeintheprice. Ofthe27

tradeeventsbetween10,000and25,000trades,nearly40%ofthemresultedinnochangeintheprice.28

Nearly90%ofthetradingeventsweretradeswithavolumelessthan50,000. Ofthese,morethanone29

third(35%)ofthemresultedinnochangeinprice.30

31

Table3:

April

2009

Price,

Change,

and

Shares

Traded

Information

32

Mode Median Average Maximum Minimum StdDev

Change 0.0000 0.0000 0.0021 0.0400 0.0300 0.0168

Price 0.1400 0.1350 0.1359 0.2500 0.1000 0.0184

StdDevShares/Trade AvgShares/Trade TotalNo.ofTrades TotalSumofTrades

54,709 12,947 2,802 36,277,849

33


26/47



Table4:April2009DifferencesEvaluation1

Events

Countof

Events

PercentvsTotalNumber

ofTrades

Average

Difference

Maximum

Difference

Minimum

Difference

StdDevof

Difference

Positive 841 30% 0.0116 0.0600 0.0003 0.0105

Negative 906 32% 0.0109 0.0700 0.0001 0.0099

None

1055

38%2

Table5:April2009DifferencesDistribution3

Apr09 Counts DistributionofDifferencesperCategory

Category Total Positive Negative None Total Positive Negative None

1100 289 70 79 140 10% 24% 27% 48%

1011,000 306 121 133 52 11% 40% 43% 17%

1,0015,000 492 176 201 115 18% 36% 41% 23%

5,00110,000 852 203 205 444 30% 24% 24% 52%

10,00125,000 561 165 175 221 20% 29% 31% 39%

25,00150,000 157 54 57 46 6% 34% 36% 29%

50,001100,000

97

35

37

25

3%

36%

38%

26%

Morethan100K 48 17 19 12 2% 35% 40% 25%

4

2.2.May200956

May2009isthesecondmonthofBK. Theaveragepricewas$0.1526USDonatotalof14.4Mshares7

traded. Theaveragenumberofsharespertradeis6,075whichrepresent0.01%ofthetotalavailable8

sharesfromtheissuer. Thetotalnumberoftradingeventswas2,369. Ofinterestisthefactthatover9

half(57%)ofthetradesresultedinnochangeintheprice. Thepercentoftradesthatresultedina10

positivedifference

was

21%

and

the

percent

of

trades

that

resulted

in

anegative

difference

was

22%,

11

nearlyidentical. Theactualnumberofnegativetradesexceededthenumberofpositivetradesbyonly12

15trades. Thevariabilityinthepositiveandnegativedifferencesinpriceasdemonstratedbythe13

standarddeviationofthedifferencesisremarkablysimilarwiththedifferenceinthestandarddeviations14

onlybeing0.0003. Theaveragepositivedifferenceis0.0003greaterthantheaveragenegative15

difference,whichisnearlynegligible.16

17

Thetradesthathadavolume100sharesorlessaccountedfor20%ofthetradeswithnearlyhalfof18

them(44%)resultinginapositivedifferenceand39%resultinginnodifferenceinprice. Thismeansthat19

nearlytwo

thirds

of

the

trading

events

associated

with

volumes

less

than

100

shares

were

associated

20

withapricethatwaseitherlessormorethantheimmediatelyprecedingprice,mostofthembeing21

positive. Nearlyhalfofthetrades(48%)hadvolumesbetween1,000and10,000shareswhichfitwith22

theaveragesharespertrade. Ofthetradeeventsbetween1,000and5,000trades,nearlytwothirdsof23

them(61%)resultedinnochangeintheprice. Ofthetradeeventsbetween5,000and10,000trades,24

nearlythreequartersofthem(71%)resultedinnochangeintheprice. Nearly95%ofthetradingevents25

weretradeswithavolumelessthan50,000. Ofthese,morethanhalf(55%)ofthemresultedinno26


27/47



changeinprice. Itisinterestingtonotethattherewere10tradeswithmorethan100,000shareseach1

and60%ofthemresultedinnochangeinprice.2

3

Table6:May2009Price,Change,andSharesTradedInformation4


Change 0.0000 0.0025 0.0023 0.0275 0.0240 0.0093

Price 0.1400 0.1500 0.1526 0.1950 0.1200 0.0145


13,620 6,075 2,369 14,390,843

5

Table7:May2009DifferencesEvaluation6

Events

Countof

Events

PercentvsTotal

NumberofTrades

Average

Difference

Maximum

Difference

Minimum

Difference

StdDevof

Difference

Positive 498 21% 0.0059 0.0400 0.0001 0.0037

Negative 513 22% 0.0056 0.0200 0.0001 0.0034

None 1358 57%

7

Table8:May2009DifferencesDistribution8

May09 Counts DistributionofDifferencesperCategory


1100 470 208 78 184 20% 44% 17% 39%

1011,000 351 76 113 162 15% 22% 32% 46%

1,0015,000 554 99 115 340 23% 18% 21% 61%

5,00110,000 585 57 110 418 25% 10% 19% 71%

10,00125,000 304 39 69 196 13% 13% 23% 64%

25,00150,000 63 13 16 34 3% 21% 25% 54%

50,001100,000 32 6 8 18 1% 19% 25% 56%

Morethan100K 10 0 4 6 0% 0% 40% 60%

9

2.3.June20091011

June2009isthethirdmonthofBK. Theaveragepricewas$0.1717USDonatotalof19.5Mshares12

traded. Theaveragenumberofsharespertradeis6,757whichrepresent0.01%ofthetotalavailable13

sharesfromtheissuer. Thetotalnumberoftradingeventswas2,890whichwereabout500morethan14

lastmonth. Ofinterestisthefactthatnearlytwothirds(61%)ofthetradesresultedinnochangeinthe15

price.

The

percent

of

trades

that

resulted

in

a

positive

difference

was

19%

and

the

percent

of

trades

16

thatresultedinanegativedifferencewas20%,nearlyidentical. Theactualnumberofnegativetrades17

exceededthenumberofpositivetradesbyonly36trades. Thevariabilityinthepositiveandnegative18

differencesinpriceasdemonstratedbythestandarddeviationofthedifferencesisidenticalwithno19

differenceinthestandarddeviations. Theaveragepositivedifferenceis0.0002greaterthanthe20

averagenegativedifference,whichisnearlynegligible.21

22


28/47



Thetradesthathadavolume100sharesorlessaccountedfor24%ofthetradeswithnearlyhalfof1

them(49%)resultinginapricedifference. Ninetyfourpercent(94%)ofthetradeshadvolumesless2

than25,000shareswhichfitwiththeaveragesharespertradeandthestandarddeviationoftheshares3

pertrade. Overhalfofallthetradesineachcategoryunder25,000resultedinnochangeinprice. Itis4

interestingtonotethattherewere13tradeswithmorethan100,000shareseachandnearlyone5

quarterofthem(23%)resultedinnochangeinprice.6

7

Table9:June2009Price,Change,andSharesTradedInformation8


Change 0.0000 0.0000 0.0064 0.3600 0.0300 0.0192

Price 0.1700 0.1720 0.1717 0.5300 0.1220 0.0223


16,904 6,757 2,890 19,526,439

9

Table10:June2009DifferencesEvaluation10

Events

Countof

Events


ofTrades

Average

Difference

Maximum

Difference

Minimum

Difference

StdDevof

Difference

Positive 552 19% 0.0059 0.3500 0.0001 0.0150

Negative 586 20% 0.0057 0.3600 0.0001 0.0150

None 1752 61%

11

Table11:June2009DifferencesDistribution12

Jun09 Counts DistributionofDifferencesperCategory


1100 695 245 97 353 24% 35% 14% 51%

1011,000 434 55 132 247 15% 13% 30% 57%

1,0015,000 619 100 126 393 21% 16% 20% 63%

5,00110,000 605 94 123 388 21% 16% 20% 64%

10,00125,000 357 35 68 254 12% 10% 19% 71%

25,00150,000 111 18 19 74 4% 16% 17% 67%

50,001100,000 56 4 12 40 2% 7% 21% 71%

Morethan100K 13 1 9 3 0% 8% 69% 23%

13


29/47



2.4.July200912

July2009isthefourthmonthofBK. Theaveragepricewas$0.1191USDonatotalof8Msharestraded.3

Theaveragenumberofsharespertradeis5,368whichrepresentlessthan0.01%ofthetotalavailable4

shares

from

the

issuer.

The

total

number

of

trading

events

was

1,493

which

were

about

1,300

less

than

5

lastmonth. Ofinterestisthefactthatnearlyhalf(48%)ofthetradesresultedinnochangeintheprice.6

Thepercentoftradesthatresultedinapositivedifferencewas26%andthepercentoftradesthat7

resultedinanegativedifferencewas26%,identical. Thevariabilityinthepositiveandnegative8

differencesinpriceasdemonstratedbythestandarddeviationofthedifferencesisidenticalwithno9

differenceinthestandarddeviations. Theaveragepositivedifferenceis0.0001greaterthanthe10

averagenegativedifference,whichisnearlynegligible.11

12

Thetradesthathadavolume100sharesorlessaccountedfor23%ofthetradeswith41%resultingin13

nopricedifferencemeaningthat59%(overhalf)ofthetradeswith100sharesorlessresultedinaprice14

difference. Ninetysixpercent(96%)ofthetradeshadvolumeslessthan25,000shareswhichfitwith15

theaveragesharespertradeandthestandarddeviationofthesharespertrade. Nearlytwothirdsof16

thetradesbetween5,000and25,000sharesresultedinnochangeinprice. Itisinterestingtonotethat17

therewere20tradesbetween50,000and100,000sharesand60%ofthemresultedinnochangein18

price.19

20

Table12:July2009Price,Change,andSharesTradedInformation21


Change 0.0000 0.0050 0.0049 0.0160 0.0250 0.0090

Price

0.1200

0.1200

0.1191

0.1450

0.0950

0.0102


11,000 5,368 1,493 8,013,965

22

Table13:July2009DifferencesEvaluation23

Events

Countof

Events


ofTrades

Average

Difference

Maximum

Difference

Minimum

Difference

StdDevof

Difference

Positive 391 26% 0.0073 0.0200 0.0003 0.0042

Negative 392 26% 0.0072 0.0200 0.0005 0.0042

None 710 48%

24


30/47



Table14:July2009DifferencesDistribution1

Jul09 Counts DistributionofDifferencesperCategory


1100 337 150 50 137 23% 45% 15% 41%

1011,000 337 93 121 123 23% 28% 36% 36%

1,0015,000

319

76

100

143

21%

24%

31%

45%

5,00110,000 248 27 63 158 17% 11% 25% 64%

10,00125,000 183 25 39 119 12% 14% 21% 65%

25,00150,000 45 15 13 17 3% 33% 29% 38%

50,001100,000 20 4 4 12 1% 20% 20% 60%

Morethan100K 4 1 2 1 0% 25% 50% 25%

2

2.5.August200934

August2009isthefifthmonthofBK. Theaveragepricewas$0.1416USDonatotalof8.9Mshares5

traded. Theaveragenumberofsharespertradeis4,676whichrepresentlessthan0.01%ofthetotal6

availablesharesfromtheissuer. Thetotalnumberoftradingeventswas1,894whichwereabout3007

morethanlastmonth. Ofinterestisthefactthatnearlyhalf(45%)ofthetradesresultedinnochangein8

theprice. Thepercentoftradesthatresultedinapositivedifferencewas27%andthepercentoftrades9

thatresultedinanegativedifferencewas28%,whichisnearlyidentical. Thevariabilityinthepositive10

andnegativedifferencesinpriceasdemonstratedbythestandarddeviationofthedifferencesis.000111

whichisnearlyidentical. Theaveragepositivedifferenceis0.0001greaterthantheaveragenegative12


14

Thetrades

that

had

avolume

100

shares

or

less

accounted

for

15%

of

the

trades

with

49%

resulting

in

15



theaveragesharespertradeandthestandarddeviationofthesharespertrade. Overhalfofthetrades18

werebetween100and5,000shares. Itisinterestingtonotethattherewere263tradesover10,00019

withbetweenhalfandtwothirdsofthemresultinginnochangeinprice.20

21

Table15:August2009Price,Change,andSharesTradedInformation22


Change

0.00000.0050

0.0048

0.0200

0.0330

0.0078

Price 0.1400 0.1400 0.1416 0.1750 0.1100 0.0110


10,919 4,676 1,894 8,855,595

23


31/47



Table16:August2009DifferencesEvaluation1

Events

Countof

Events


ofTrades

Average

Difference

Maximum

Difference

Minimum

Difference

StdDevof

Difference

Positive 518 27% 0.0080 0.0340 0.0001 0.0045

Negative 522 28% 0.0079 0.0230 0.0001 0.0044

None 854 45%

2

Table17:August2009DifferencesDistribution3

Aug09 Counts DistributionofDifferencesperCategory


1100 287 78 67 142 15% 27% 23% 49%

1011,000 736 285 213 238 39% 39% 29% 32%

1,0015,000 387 93 112 182 20% 24% 29% 47%

5,00110,000 221 20 59 142 12% 9% 27% 64%

10,00125,000 178 25 54 99 9% 14% 30% 56%

25,00150,000 55 6 14 35 3% 11% 25% 64%

50,001100,000 26 10 2 14 1% 38% 8% 54%

Morethan100K 4 1 1 2 0% 25% 25% 50%

4

2.6.September200956

September2009isthesixthmonthofBK. Theaveragepricewas$0.1515USDonatotalof7.4Mshares7

traded. Theaveragenumberofsharespertradeis5,019whichrepresentlessthan0.01%ofthetotal8

availablesharesfromtheissuer. Thetotalnumberoftradingeventswas1,473whichwereabout4009

lessthanlastmonth. Ofinterestisthefactthatoverhalf(58%)ofthetradesresultedinnochangein10

theprice.

The

percent

of

trades

that

resulted

in

apositive

difference

was

21%

and

the

percent

of

trades

11

thatresultedinanegativedifferencewas21%,whichisidentical. Thevariabilityinthepositiveand12

negativedifferencesinpriceasdemonstratedbythestandarddeviationofthedifferencesis.000113

whichisnearlyidentical. Theaveragepositivedifferenceis0.0002greaterthantheaveragenegative14


16




the

average

shares

per

trade

and

the

standard

deviation

of

the

shares

per

trade.

Over

half

of

the

trades

20

werebetween100and5,000shareswithbetweenhalfandtwothirdsoftheseresultinginnochangein21

price. Itisinterestingtonotethattherewere14tradesover50,000withbetweentwothirdsandthree22

quartersofthemresultinginnochangeinprice.23

24

25


32/47



Table18:September2009Price,Change,andSharesTradedInformation1


Change 0.0000 0.0050 0.0032 0.0230 0.0250 0.0070

Price 0.1500 0.1500 0.1515 0.1740 0.1200 0.0090


9,405

5,019

1,473

7,392,434

2

Table19:September2009DifferencesEvaluation3

Events

Countof

Events


ofTrades

Average

Difference

Maximum

Difference

Minimum

Difference

StdDevof

Difference

Positive 315 21% 0.0069 0.0250 0.0001 0.0044

Negative 306 21% 0.0071 0.0200 0.0001 0.0045

None 852 58%

4

Table20:September2009DifferencesDistribution5

Sep09 Counts DistributionofDifferencesperCategory

Category

Total

Positive

Negative

None

Total

Positive

Negative

None

1100 249 68 59 122 17% 27% 24% 49%

1011,000 405 126 99 180 27% 31% 24% 44%

1,0015,000 363 56 61 246 25% 15% 17% 68%

5,00110,000 195 28 36 131 13% 14% 18% 67%

10,00125,000 205 27 37 141 14% 13% 18% 69%

25,00150,000 42 8 12 22 3% 19% 29% 52%

50,001100,000 11 2 1 8 1% 18% 9% 73%

Morethan100K 3 0 1 2 0% 0% 33% 67%

6


33/47



2.7.October200912

October2009istheseventhmonthofBK. Duringthismonth,theanticipationoftheHydroassetsale,3

themorepositiveMOR,andahighervolumeofpositivechatterwasnoted.Theaveragepricewas4

$0.2206

USD

on

a

total

of

28.6M

shares

traded.

This

was

the

largest

number

of

shares

traded

in

a

single

5

monthexceptforApril2009. Theaveragenumberofsharespertradeis9,241whichrepresentlessthan6

0.01%ofthetotalavailablesharesfromtheissuer. Thetotalnumberoftradingeventswas3,095which7

wereaboutdoublethenumberoftradeslastmonth. Ofinterestisthefactthatoverhalf(58%)ofthe8

tradesresultedinnochangeinthepricewhichwasexactlythesamepercentageaslastmonth. The9

percentoftradesthatresultedinapositivedifferencewas21%andthepercentoftradesthatresulted10

inanegativedifferencewas21%,whichisidenticaltoeachotherandlastmonth. Thevariabilityinthe11

positiveandnegativedifferencesinpriceasdemonstratedbythestandarddeviationofthedifferences12

isnoneornearlyidentical. Theaveragepositivedifferenceisnogreaterthantheaveragenegative13

difference.14

15


nopricedifferencemeaningthat49%(nearlyhalf)ofthetradeswith100sharesorlessresultedina17

pricedifference. Ninetypercent(90%)ofthetradeshadvolumeslessthan25,000shareswhichfitwith18

theaveragesharespertradeandthestandarddeviationofthesharespertrade. Over75%ofthetrades19

werebetween101and25,000shareswithbetweenhalfand60%oftheseresultinginnochangein20

price. Itisinterestingtonotethattherewere32tradesover100,000withonly3%ofthemresultingin21

nochangeinpriceandtwothirdsofthemresultingindecreasingtheprice.22

23

Table21:October2009Price,Change,andSharesTradedInformation24


Change 0.0000 0.0000 0.0105 0.1100 0.0700 0.0374

Price 0.2700 0.2200 0.2206 0.3400 0.1250 0.0592


16,901 9,241 3,095 28,601,476

25

Table22:October2009DifferencesEvaluation26

Events

Countof

Events


ofTrades

Average

Difference

Maximum

Difference

Minimum

Difference

StdDevof

Difference

Positive

656

21%

0.0064

0.0500

0.0001

0.0056

Negative 649 21% 0.0064 0.0500 0.0001 0.0052

None 1790 58%

27


34/47



Table23:October2009DifferencesDistribution1

Oct09 Counts DistributionofDifferencesperCategory


1100 464 117 86 261 15% 25% 19% 56%

1011,000 381 89 98 194 12% 23% 26% 51%

1,0015,000

748

140

139

469

24%

19%

19%

63%

5,00110,000 644 124 133 387 21% 19% 21% 60%

10,00125,000 548 113 106 329 18% 21% 19% 60%

25,00150,000 187 41 36 110 6% 22% 19% 59%

50,001100,000 91 21 31 39 3% 23% 34% 43%

Morethan100K 32 11 20 1 1% 34% 63% 3%

2

2.8.November200934

November2009istheeighthmonthofBK. Theaveragepricewas$0.1502USDonatotalof9.7M5

sharestraded.

This

was

the

largest

number

of

shares

traded

in

asingle

month

except

for

April

2009.

6

Theaveragenumberofsharespertradeis6,479whichrepresentlessthan0.01%ofthetotalavailable7

sharesfromtheissuer. Thetotalnumberoftradingeventswas1,495whichwereabouthalfthe8

numberoftradeslastmonth. Ofinterestisthefactthatnearlytwothirds(61%)ofthetradesresulted9

innochangeintheprice. Thepercentoftradesthatresultedinapositivedifferencewas18%andthe10

percentoftradesthatresultedinanegativedifferencewas21%,whichindicatesadownwardpressure11

intheprice. Thevariabilityinthepositiveandnegativedifferencesinpriceasdemonstratedbythe12

standarddeviationofthedifferencesis.0002whichisnearlynegligible. Theaveragepositivedifference13

is.0005greaterthantheaveragenegativedifference,thoughsincetherewereagreatnumberof14

negativetrades,

the

price

pressure

was

downward.

15

16


nopricedifference. Ninetyfourpercent(94%)ofthetradeshadvolumeslessthan25,000shareswhich18

fitwiththeaveragesharespertradeandthestandarddeviationofthesharespertrade. Twothirdsof19

thetradeswerebetween101and10,000shareswithnearlytwothirdsoftheseresultinginnochange20

inprice. Itisinterestingtonotethattherewere3tradesover100,000withtwothirdsofthemresulting21

innochangeinprice.22

23

Table24:

November

2009

Price,

Change,

and

Shares

Traded

Information

24


Change 0.0000 0.0050 0.0036 0.0320 0.0330 0.0106

Price 0.1300 0.1450 0.1502 0.2050 0.1150 0.0206


12,991 6,479 1,495 9,686,733

25


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Table25:November2009DifferencesEvaluation1

Events

Countof

Events


ofTrades

Average

Difference

Maximum

Difference

Minimum

Difference

StdDevof

Difference

Positive 274 18% 0.0067 0.0250 0.0001 0.0045

Negative 307 21% 0.0062 0.0250 0.0001 0.0047

None 914 61%

2

Table26:November2009DifferencesDistribution3

Nov09 Counts DistributionofDifferencesperCategory


1100 211 53 27 131 14% 25% 13% 62%

1011,000 318 60 76 182 21% 19% 24% 57%

1,0015,000 356 56 83 217 24% 16% 23% 61%

5,00110,000 312 52 62 198 21% 17% 20% 63%

10,00125,000 210 39 36 135 14% 19% 17% 64%

25,00150,000 61 8 13 40 4% 13% 21% 66%

50,001100,000

24

6

9

9

2%

25%

38%

38%

Morethan100K 3 0 1 2 0% 0% 33% 67%

4

2.9.December200956

December2009istheninthmonthofBK. Theaveragepricewas$0.1265USDonatotalof15.5M7

sharestraded. Theaveragenumberofsharespertradeis6,381whichrepresentlessthan0.01%ofthe8

totalavailablesharesfromtheissuer. Thetotalnumberoftradingeventswas2,427whichwereabout9

1,000moretradesthanlastmonth. Ofinterestisthefactthatnearlytwothirds(64%)ofthetrades10

resultedin

no

change

in

the

price.

The

percent

of

trades

that

resulted

in

apositive

difference

was

18%

11

andthepercentoftradesthatresultedinanegativedifferencewas18%,whichisidentical. The12

variabilityinthepositiveandnegativedifferencesinpriceasdemonstratedbythestandarddeviationof13

thedifferencesis.0001whichisnearlynegligible. Theaveragepositivedifferenceisequaltothe14

averagenegativedifference.15

16


nopricedifference. Ninetyfivepercent(95%)ofthetradeshadvolumeslessthan25,000shareswhich18

fitwiththeaveragesharespertradeandthestandarddeviationofthesharespertrade. Twothirdsof19

thetrades

were

between

101

and

10,000

shares

with

nearly

two

thirds

of

these

resulting

in

no

change

20

inprice. Itisinterestingtonotethattherewere10tradesover100,000withtheirimpactonprice21

nearlyevenlydistributedbetweenpositive,negative,andnone.22

23


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Table27:December2009Price,Change,andSharesTradedInformation1


Change 0.0000 0.0020 0.0002 0.0551 0.0350 0.0165

Price 0.1100 0.1152 0.1265 0.2100 0.1000 0.0249


12,474

6,381

2,427

15,487,572

2

Table28:December2009DifferencesEvaluation3

Events

Countof

Events


ofTrades

Average

Difference

Maximum

Difference

Minimum

Difference

StdDevof

Difference

Positive 438 18% 0.0050 0.0198 0.0001 0.0037

Negative 445 18% 0.0050 0.0197 0.0001 0.0036

None 1544 64%

Table29:December2009DifferencesDistribution4

Dec09 Counts DistributionofDifferencesperCategory


1100 379 68 67 244 16% 18% 18% 64%

1011,000 482 68 107 307 20% 14% 22% 64%

1,0015,000 600 112 105 383 25% 19% 18% 64%

5,00110,000 495 87 85 323 20% 18% 17% 65%

10,00125,000 345 67 58 220 14% 19% 17% 64%

25,00150,000 86 22 12 52 4% 26% 14% 60%

50,001100,000 30 11 7 12 1% 37% 23% 40%

Morethan100K 10 3 4 3 0% 30% 40% 30%

5


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2.10. All200912

Allof2009afterApril22,2009,representsthefirstcalendaryearofBK. Theaveragepricewas$0.15693

USDonatotalof138.9Msharestraded. Theaveragenumberofsharespertradeis7,125which4

represent

less

than

0.01%

of

the

total

available

shares

from

the

issuer.

The

total

number

of

trading

5

eventswas19,487. Ofinterestisthefactthatnearlyhalf(54%)ofthetradesresultedinnochangein6

theprice. Thepercentoftradesthatresultedinapositivedifferencewas23%andthepercentoftrades7

thatresultedinanegativedifferencewas23%,whichisidentical. Thevariabilityinthepositiveand8

negativedifferencesinpriceasdemonstratedbythestandarddeviationofthedifferencesis.00039

whichisverysmall. Theaveragepositivedifferenceis.0005lessthantheaveragenegativedifference.10

11


nopricedifference. Ninetythreepercent(93%)ofthetradeshadvolumeslessthan25,000shares13

whichfitwiththeaveragesharespertradeandthestandarddeviationofthesharespertrade. Two14

thirdsofthetradeswerebetween101and10,000shareswithoverhalfoftheseresultinginnochange15

inprice. Itisinterestingtonotethattherewere113tradesover100,000withnearlyonequarterof16

themhavingnochangeinprice.17

18

Table30:All2009Price,Change,andSharesTradedInformation19


Change 0.0000 0.0000 0.0018 0.3600 0.0700 0.0202

Price 0.1400 0.1470 0.1569 0.5300 0.0950 0.0426


17,636

7,125

19,487

138,854,023

20

Table31:All2009DifferencesEvaluation21

Events

Countof

Events


ofTrades

Average

Difference

Maximum

Difference

Minimum

Difference

StdDevof

Difference

Positive 4432 23% 0.0077 0.3550 0.0001 0.0090

Negative 4552 23% 0.0075 0.3600 0.0001 0.0087

None 10503 54%

22


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Table32:All2009DifferencesDistribution1

2009 Counts DistributionofDifferencesperCategory


1100 3377 1063 608 1706 17% 31% 18% 51%

1011,000 3741 983 1095 1663 19% 26% 29% 44%

1,0015,000

4396

919

1036

2441

23%

21%

24%

56%

5,00110,000 3917 652 841 2424 20% 17% 21% 62%

10,00125,000 2793 515 625 1653 14% 18% 22% 59%

25,00150,000 784 177 189 418 4% 23% 24% 53%

50,001100,000 366 94 101 171 2% 26% 28% 47%

Morethan100K 113 29 57 27 1% 26% 50% 24%

2

2.11. January201034

January2010isthetenthmonthofBKandthefirstmonthof2010. Theaveragepricewas$0.1286USD5

onatotalof7.8Msharestraded. Theaveragenumberofsharespertradeis8,330whichrepresentless6

than0.01%ofthetotalavailablesharesfromtheissuer. Thetotalnumberoftradingeventswas9347

whichwereabout1,500lesstradesthanlastmonth. Ofinterestisthefactthatnearlytwothirds(61%)8

ofthetradesresultedinnochangeintheprice. Thepercentoftradesthatresultedinapositive9

differencewas19%andthepercentoftradesthatresultedinanegativedifferencewas20%,whichis10

nearlyidentical. Thevariabilityinthepositiveandnegativedifferencesinpriceasdemonstratedbythe11

standarddeviationofthedifferencesis.0004whichismorevariabilitythanpreviousmonths. The12

averagepositivedifferenceis.0004morethantheaveragenegativedifference.13

14


nopricedifference. Ninetythreepercent(93%)ofthetradeshadvolumeslessthan25,000shares16

whichfitwiththeaveragesharespertradeandthestandarddeviationofthesharespertrade. Two17

thirdsofthetradeswerebetween1,000and25,000shareswithnearlytwothirdsoftheseresultingin18

nochangeinprice. Itisinterestingtonotethattherewere8tradesover100,000withthreequartersof19

themresultinginnochangeinprice.20

21


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Table33:January2010Price,Change,andSharesTradedInformation1


Change 0.0000 0.0000 0.0030 0.0360 0.0230 0.0118

Price 0.1250 0.1290 0.1286 0.1600 0.1010 0.0130


16,084

8,330

934

7,780,136

2

Table34:January2010DifferencesEvaluation3

Events

Countof

Events


ofTrades

Average

Difference

Maximum

Difference

Minimum

Difference

StdDevof

Difference

Positive 175 19% 0.0052 0.0177 0.0001 0.0036

Negative 188 20% 0.0048 0.0150 0.0001 0.0030

None 571 61%

4

Table35:January2010DifferencesDistribution5

Jan10 Counts DistributionofDifferencesperCategory


1100 173 40 36 97 19% 23% 21% 56%

1011,000 126 20 39 67 13% 16% 31% 53%

1,0015,000 188 35 34 119 20% 19% 18% 63%

5,00110,000 209 39 26 144 22% 19% 12% 69%

10,00125,000 177 32 39 106 19% 18% 22% 60%

25,00150,000 34 6 8 20 4% 18% 24% 59%

50,001100,000 19 2 5 12 2% 11% 26% 63%

Morethan100K 8 1 1 6 1% 13% 13% 75%

6

7


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3. ShareVolumebyMonth12

ThetotalsharevolumespereachmonthoftradingsinceBK(April2009)foreachmarketmakerwas3

reviewedtoascertainfirstiftherewereanypatternstobeseenandsecondtoidentifythemajor4

traders.This

data

was

gathered

from

the

website

www.OTCBB.com.

5

6

Table36:SharevolumetradedpermonthbyMarketMaker7

8

9


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Table37:MarketMakerSymbolsandDefinitions1Symbol MarketMakerDefinition Symbol MarketMakerDefinition

ABLE NatixisBleichroederLLC MERQ MERCATORASSOCIATES,LLC

ARCA ArchipelagoTradingServices MITR MillerTabakRobertsSec

AUTO AutomatedTradingDesk MURF MurphyandDurieu

BMOC BMOCapitalMarketsCorp. NBSI BMOCapitalMarketsCorp.

BTIG BTIG,LLC NITE KnightEquityMarkets,L.P.

CANT Cantor,Fitzgerald&Co. NOBL NobleInternationalInvest.

CARR CarrSecuritiesCp. PALC PaliCapital

COWN CowenandCompany,LLC PERS PershingLLC

CSTI CollinsStewartLLC PERT PERSHINGTRADINGCOMPANY,L.P

DBAB DeutscheBancAlexBrown PUMA PumaCapital,Llc

DOMS DomesticSecurities,Inc. RAJA Raymond,James&Associates

DRCO DahlmanRose&Company,LLC RCMP RaffertyCapitalMarkets,LLC

ETMM E*TradeCapitalMarketsLlc SALI Sterne,Agee&Leach,Inc.

FANC Finance500,Inc. SBSH CitigroupGlobalMarketsInc.

FBCO CreditSuisseSecuritiesUSA SEAB SeaboardPlanningCorp.

FORT TiconderogaSecuritiesLLC SSGI SetonSecuritiesGroupInc

GSCO Goldman,Sachs&Co. STEW COLLINSSTEWARTINC

HDSN HudsonSecurities,Inc. STXG StockcrossFinancialServices

JEFF

Jefferies&

Company,

Inc.

SUFI

Susquehanna

Financial

Group,

LABS LaBrancheFinancialServices UBSS UBSSecuritiesLLC

LAMP LampostCapital,L.C. VERT TheVerticalTradingGroup

LFCM LighthouseFinancialGroup,LLC VFIN vFinanceInvestments,Inc.

MAXM MaximGroupLLC VNDM VandhamSecurities

WEED WeedenandCo.Inc.

2

ThedatainTable36issummarizedinFigure16. Nite(KnightEquityMarkets,L.P.)isthelargesttrader3

ofABWTQsecuritiestradingover42.8MsharesfromAprilthroughDecember2009. ABLE(Natixis4

BleichroederLLC)isthesecondlargesttraderwithalittlelessthan41.6MsharestradedfromApril5

throughDecember2009. Bothofthesecombinedtoover56%ofthetotalsharestradedfromApril6

throughDecember

2009.

The

next

two

highest

traders

over

that

time

period

were

ETMM,

E*Trade

7

CapitalMarketsLLC,(13.4Mshares)andUBSS,UBSSecuritiesLLC(10.5Mshares).8

9


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1Figure16:TotalVolumeofSharesTradedperMarketMoverfor20092

WhilethetotaltradingamountsfromAprilthroughDecember2009areshowninFigure16,the3

followinggraphsdepictthepatternoftrades.4

5

6Figure17:ABLESharesTradedPerMonth7

Figure17showsadefinitedecreasingtrendintradingthroughSeptember2009forABLEwithalarge8

spikeinOctober2009.9

10


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1

2Figure18:NITESharesTradedPerMonth3

Figure18showsadefinitedecreasingtrendintradingthroughSeptember2009forNITEwithaspikein4

October2009.5

6

7 Figure19:ETMMSharesTradedPerMonth8

Figure19showsthatETMMisthelargestretailmarketmakertraderforABWTQfromApril20099

throughDecember2009,thoughitisobviousthevolumeoftradingforETMMisfarbelowthatofNITE10

orABLEforthesametimeperiod.11


44/47



1 Figure20:UBSSSharesTradedPerMonth2

Figure20showsthatUBSStradingpatternisfairlysteadyfromApril2009throughDecember2009,3

thoughitisobviousthevolumeoftradingforUBSSisfarbelowthatofNITEorABLEforthesametime4

period.5

6

ThetradingvolumesandpatternswouldindicatethatABLEandNITEhavehadthelargestimpacton7

ABWTQstradinghistoryandJanuary2010sdataseemstoshowthetrendcontinuing.8


45/47



1

4. Conclusions23

ThefailstodeliverdatapriortoBKshowaninterestingpatternofhighfailsmostlikelybeingdueto4

nakedshorting. Theshortingwasatalevelmeetingthresholdforreportingnearly90%to100%ofthe5

tradingdaysfor11monthspriortoBKaftertheBowatermerger. Apparently,whateverentityor6

entitieswasshortingthesystemknewBKwasonthehorizonforearly2009andneededtoclearthefails7

forthecalendaryear2008andavoidthemforthefinalquarterof2008. Apparently,therulesofBK8

allowedthemtorestarttheshortingprocessforonequarterafterBKatalevelmeetingthethreshold,9

butthentheleveloffailswasheldtobelow0.5%ofthetotalavailablesharesforfiveconsecutivedays10

specificallytoavoidreporting. Itshouldbeacknowledgedthattheanalysisoftheshortingdatais11

incompleteastheSEChasyettoprovidetheshortinginformationrequestednearlyfiveweeksago.12

13

AfterBK,thepriceseemedtobedriventotherangebetween$.10to$.20USDshortlyafterBKand14

apparentlywaspurposelykepttherebymanipulatingthetradesresultinginapositiveornegative15

differenceinpricewiththosethatresultedinnochange. Thismanipulationisobviousfromthetiming16

ofthetrades,thelackofdifferenceinthevariabilityofthepositiveandnegativedifferencetradesas17

showninTable38,andthesimilarityintheaverageofthepositiveandnegativetrades.18

19

Table38:SummaryoftheDifferencesintheStandardDeviationsofthePositiveandNegativePriceDifferencesper200920monthafterBK21

2009MonthafterBKDifferencebetween PositiveDifferenceStandardDeviationandNegative

DifferenceStandardDeviation

April

.0006

May .0003

June .0000

July .0000

Aug .0001

Sept .0001

Oct .0004

Nov .0002

Dec .0001

Totalofthetrading

eventsfor2009.0003

22

ThefailuresinthefirstfewmonthsofBKalsoputpressureonthepriceanddecreasedtheinterestin23

tradingthestock. Wheninterestinacquiringthestockincreased,sodidthevolumeofshorts,thus24

keepingthepricefairlyflatanddecreasinganyupwardmomentumofthestock.25

26

AfterBK,thereweretwobumpsintradingactivity:October2009andDecember2009. October200927

wasduetotheexpectationofanassetsaleandthefactthattheMORwaslessredthanprevious28


46/47



monthscombinedwithsignificantpositivechatterregardingthecompanyanditsstock. December20091

waswhentheMORshowedanetoperatingprofitandtheassetsaleoccurred. Interestingly,the2

bumpinpriceandactivitywashigherinOctober2009thanDecember2009.3

4

ThesheervolumeoftradingandthepatternoftradingfromNITEandABLEbothseemtoindicatethat5

thesetwomarketmakersaretheonlytwomakersthathavebeentradingwithsufficientvolumeto6

accountamajorityofthefailstodeliverthathaveoccurredsinceBK.7

8

Theconclusionsfromthisanalysisarebeingofferedfrompeoplewithlimitedunderstandingofthestock9

market,ABH(orABWTQ),andthepaper/forestryindustryingeneralbutwithanexpertlevelknowledge10

ofstatisticsandapassionforduediligence. Peoplewithgreaterunderstandingofthesetopicsare11

askedtoreviewthedatapresentedhereandofferotherobservationsandconclusions.12

13


47/47


5.Questionsthatdemandtobeanswered12

Theconclusionsfromthisreportleaveitspreparerswithseveralcriticalquestionsthatdemandtobe3

answeredbytheSECandtheAbitibiBowatermanagement. Thesequestionsaredetailedbelow.4

1. Itappears

the

announcement

of

merger

of

Abitibi

and

Bowater

in

January

2007

was

the

catalyst

5

fortheshortingofABH,withlargefailstodeliver. Thepreparersofthisreportaresignificant6

shareholdersanddemandtoknowwhatAbitibiBowatermanagementhasdoneandwilldoin7

ordertostopthispracticeasthecompanyemergesfromBK. Howwillthisplanbe8

communicatedtotheshareholdersandhowwilltheshareholdersbeabletoadvise9

management?10

2. DoestheSECknowthattherehasbeenextensiveshortingofthisstockwithahighvolumeof11

failstodeliverpriortoBKwiththethresholdmet? Ifso,whataretheplansforaddressingthis12

andhowwillthecompanyandshareholdersberedressed? Ifnot,thenwhataretheplansfor13

AbitibiBowatermanagementtoworkwiththeSEConthisissue?14

3. The

preparers

of

this

report

demand

to

know

who

would

benefit

from

the

shorting

process

as

15

79%ofthetradingdaysduringBKsawtheshortsaccountingforbetween10%and80%ofdays16

tradingvolumesincethisseemstobepartiallyresponsiblefortheflatnessinthestockprice?17

4. FormostmonthsafterBK,thestandarddeviationsforthepositiveandnegativedifference18

tradingeventswerenearlyidenticalasweretheaverages. Suchcontrolinvariabilityisnearly19

impossibleforanonmanipulatedstocktradinginapublicmarketwithoutsignificant,willful20

effort. Therefore,thepreparersofthisreportdemandtoknowhowwilltheSECand21

AbitibiBowatermanagementacttopreventmanipulationofthepricethroughresolutionofBK22

andafterwards?23

5. Ingeneral,adiscountbrokerchargesbetween$7USDto$20USDpertradewithnondiscount24

brokerschargingevenmore. AftertheannouncementofBK,therewere3,313tradingevents25

thatwere

100

shares

or

less

or

17%

of

the

overall

trading

events.

Since

the

price

was

kept

flat

26

between$.10USDand$.20USDoverthattimeperiod,thevalueof100sharesrangedfrom$1027

USDto$20USDmeaningtherewasnofinancialgainandoftensomelossassociatedwiththese28

tradingevents. Couldthisbeindicativeofthestockmanipulationthatappearstobe29

happening,especiallyasthisoftenresultedinapositiveornegativechangeinthestockprice?30

6. SinceitappearsheavymanipulationofthestockpriceoccurredpriortoBKandafterthe31

Bowatermergerandappearstostillbeoccurring,thepreparersofthisreportdemandtoknow32

theplanforidentifyingtheentityorentitiesmanipulatingthestockpriceandthegain33

anticipatedbythoseentities. Thisiscrucialinpreventingmanipulationinmovingforwardand34

inredressingthelossestodate. WhatisAbitibiBowatermanagementsplantoverifythestock35

manipulationandidentifytheentityorentitiesresponsible?36

37

Stats Report Feb 26 2010

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